From the monthly archives: February 2012

Posted on Monday, February 27, 2012
World oil prices surged again to new nine-month highs Friday as traders fretted about the impact of heightened geopolitical tensions over Iran on global crude oil supplies. New York's main contract, light sweet crude for April, soared almost $US2 a barrel, closing above $US109 for the first time since May.
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Posted on Monday, February 27, 2012
The downgrade of the Long-Term IDRs and VRs of CBA, NAB and WBC reflect the weaker funding profile of the major Australian banks relative to similarly rated international peers. Despite some improvement since 2008, all four banks retain a reliance on wholesale funding, particularly from offshore marketsRead the rest of entry »

Posted on Monday, February 27, 2012
It might be common sense for many but I came across a family book released by the government on healthy eating and managing children in childhood. There is a family book and a cook book and whilst they are too big to put on the website I am happy to email it to you or you can go below
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EU Finance ministers have just signed off on the bail out package for Greece.

The "voluntary" losses taken by the private bond holders will now be larger than what was agreed to the previous month. The haircut that was "agreed" to will now be 53.5%.

The IMF believes that this will be sufficient to reduce Greece's debt to GDP ratio, currently sitting at 180%, to 120.5% by 2020. This is despite modelling that was delivered in a confidential paper earlier this week whereby it was stated that by 2020 their debt to GDP ratio would only fall to 160%. Alongside this, the paper's downside scenario entailed that Greece will in fact require EUR245 billion of bailout money, rather than the EUR 130 billion that has just been agreed to.

The issue here remains that the austerity package will hinder growth in Greece's nascent (if ever) recovery, with the outcome of therefore perpetually causing international investors to shun the Greek bond market permanently.

Baseline scenarios that the IMF has used as the basis to sign off on this current bailout package delivered this afternoon is predicated on the fact that Greece's economy experiences positive GDP growth in 2013 and achieves a minimum of 2.3% GDP growth in 2014.

We continue to monitor Portuguese bonds, the 10 years currently sitting at 12.5%.

Posted on Friday, February 17, 2012
Logic argues against a Eurozone break-up given the costs to countries that exit. Nevertheless, a disorderly Greek default is a high risk, but at least Europe is becoming better at being able to deal with it, particularly if it occurs after new bailout funds are in place from mid-year.

• So while Greek issues are unlikely to go away any time soon and remain a source of volatility, they are unlikely to pose as big a threat to the global economy and investment markets as was feared last year.
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